‘Short-term contraction’ expects if Hungary adds crypto-trade to the Criminal Code

According to the Blockchain Hungary Association, the newly updated laws of Hungary on Cryptocurrency trade could have a negative influence on the domestic crypto market.

Kornél Kalocsai, the president of the association, was largely welcomed in the updated Criminal Code Decrypt. The new regulations impose fines for the operation and use of non -permit with cryptocurrency exchanges.

These include no less than five years in prison for investors who trade more than $ 1.45 million (or 500 million forints), while providers of cryptocurrency can be confronted with no less than eight years of detention.

The update has already stated that Revolut stops to stop crypto trading services in Hungary, but Kalocsai claims that the new code itself does not “push” legally operational exchanges and platforms and, instead, focuses on illegal and non-permits. ‘

“The law aims to strengthen legal certainty, to improve transparency and support providers that meet the EU and domestic regulations – such as the Mica Regulation and AML,” he said.

However, Kolocsai acknowledges that the code has only been adopted at a legal level so far and that the final text of the implementation decision has not been shared.

As such, it could turn out to be stricter than expected, which could have an unfortunate consequences for the Hungary Cryptocurrency market.

“If the decision turns out to be too strict or contradictory, domestic players could discourage and lead to a short -term contraction of the market,” he said. “That is why clarifying the legal text and the guarantee of transparent communication is essential to prevent market participants from leaving the country and to encourage instead to pursue conforming activities.”

The supervisory authority for regulated activities has also not yet published guidelines for applying for licenses. That is probably enriched uncertainty at local companies.

Despite the uncertainty, Kalocsai argues against any strong claim that the updated Criminal Code will have a horrifying effect on the crypto industry of Hungary.

“The aim of the amendment is to send actors away from underground or non -regulated operations and to the regulated market,” he explained. “The new provisions of criminal law do not prohibit the use or trade of cryptocurrencies, but rather focus on the unauthorized delivery of services.”

The updated code does not change the legal status of cryptocurrencies, which remain legally to hold. And it does not apply to transfers under $ 14,250, or 5 million forints.

“The law is specifically aimed at service activity,” Kalocsai added, “for example people who regularly advertise crypto exchange services to others in exchange for a fee or committee.”

Some complications can be produced for entities that work on a peer-to-peer basis, because, depending on the exact scope of the implementation decision, they may have to be obliged to reorganize in formal business structures or alternative legal setups.

In the future, Kalocsai expects investors to be able to use international scholarships that comply with the MICA rules of the EU or that will register in Hungary as soon as the frame of license is shared.

“The most important risk in this stage is the lack of clear communication about who qualifies as a service provider and how important terms such as ‘business activity’ or ‘currency exchange’ are interpreted in practice -although Mica already defines these conditions at the EU level,” he says, adds that the Implementation Decree.

Ultimately, Kalocsai repeats that crypto views that can already work in the EU in the EU, even in Hungary as soon as the MICA regulation is fully in force, what this should do by 2026.

“For example, an exchange in France or Germany can operate in Hungary if it meets local registration or reporting obligations,” he explains.